Given below the mail received from Mr. Muthuselvan
Dear M.shekar,
Thanks for your financial information on weekdays..
I am a Retail Investor and a trader like professional trader using leverage. I am having few questions. I want to ask you and let me clarify my question.
1. If I want to buy preferential share for particular company, how to buy? Is there any procedure for that ?
2. what is bulk deal ? How Warren buffet or Rajesh Jhunjhunwala are buying shares without broker?
Please let me know the answer of my question.
Thanks & Regards
Muthuselvan N
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Comments
Reply to general questions
April 25, 2012 by sknlakshmi, 1 year 3 weeks ago
Comment: 205
Bulk deal
Bulk deal is a single transaction or set of transactions in which the total traded quantity bought/sold under any single client code is more than 0.5% of the number of equity shares of a listed company. Bulk deals happen all through the trading day. Bulk deals happens through the market only.
Whoever may be the client (Warren buffet or Rajesh Jhunjhunwala) the bulk deal happens through exchange / stock brokers only. Stock brokers need to disclose all the bulk deals information to the exchange on a daily basis through Data Upload Software.
Preferential shares
Preferential shares are special class of shares that has properties of both an equity and a debt instrument and is generally considered a hybrid instrument. It may have any combination of features not possessed by common stock.. In the event of a company bankruptcy, preferred stock shareholders have a right to be paid company assets first. Preference shares typically pay a fixed dividend, whereas common stocks do not. And unlike common shareholders, preference share shareholders usually do not have voting rights.
Preferential shares are issued to Preferred Shareholder. Generally, it will not be issued to retail investors. It will be issued to special kind people like Qualified Institutional Buyer, preferred client with special quality. The company’s board should approve such preferential issue and finally SEBI also should approve the issue. Like buy back shares, the price for preferential is fixed by the board (either higher price or lower price).